Dividend Update - November 2016
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The middle month of each quarter is kind of like the middle child for my dividend payments. You love them for sure, but it's kind of constantly overlooked due to not being the first month of a new quarter or the larger paying third month of each quarter. Nevertheless, the dividends received in the mid-quarter month spend the same as any other dividends.
During November my FI Portfolio delivered $265.52 in dividend. I also received $1.36 within my Loyal3 Portfolio bringing my total taxable account dividends up to $266.88. My Roth IRA is always noticeably absent with the mid-quarter payout and provided $0 in dividends. Across all 3 accounts, excluding the effect of taxes, I received $266.88 in dividends during November and have received $5,059.60 year to date.
On the surface it looks to be pretty disappointing with a 16.8% decline quarter over quarter and an even more depressing 36.6% decline year over year. Let's take a deeper look at the numbers to see if things are really as bad as they seem.
The quarter over quarter decline can be attributed to two culprits. The first is Starbucks Corporation (SBUX) that for some reason or another pushed this dividend payment back into December. The second is HCP, Inc. (HCP) that I received the August payment from; however, I've since closed my position there prior to the Quality Care Properties (QCP) spinoff and thus didn't receive the November payout. Adjusting for these 2 payments moves the quarter over quarter change to a 1.7% increase.
The 2 quarter over quarter troublemakers contributed to the year over year decline, although the big issue is related to the Kinder Morgan, Inc. (KMI) debacle from late 2015. I subsequently closed my position in Kinder Morgan for a variety of reasons stemming from the dividend cut, although it was mainly due to managements' handling of a bad situation. Long story short I lost trust in management even though I agreed with the dividend cut. Unfortunately, Kinder Morgan paid over $110 in dividends to me in November 2015, but is noticeably missing for 2016. Adjusting the dividends from 2015 for the 3 missing payouts shows a solid 6.2% increase year over year.
My Loyal3 Portfolio had very little to report with just one small dividend payment from Apple (AAPL). Luckily though the reporting here is fairly straightforward since there were no changes from August. So quarter over quarter there was no change although year over year does need some explaining with a 58.9% decline.
I honestly have no idea what's going on with The Kraft Heinz Company (KHC). In 2015 KHC made a dividend payment in November; however, this year that same payment is being pushed back to December. There's no big worries since the payment is still being made, but I hope they settle into a routine with the timing of dividend payments.
Adjusting November 2015's dividend total for the KHC payout shows a year over year change of 9.7%. That's pure organic dividend growth from Apple raising it's payment so I'm pretty happy with the increase.
Roth IRA Portfolio
The comparisons are easy to make for my Roth IRA Portfolio since no dividends were received across any of the time periods. So no increases were realized, but no declines either.
Year to date I've received $224.31 in dividends within my Roth IRA which is a 0.4% increase from 2015's YTD total through November. Considering that I've closed out my Wal-Mart Stores (WMT) position within my Roth IRA, I'm pretty happy that organic dividend growth and reinvestment has made up that gap.
Dividend Raises During the Month
November was a pretty slow month for dividend raises too with 3 companies announcing increases. Emerson Electric (EMR) got the month started off with a 1.1% increase. Next up was Starbucks Corporation (SBUX) with a much more impressive 25.0% increase. Last, but not least, was Becton, Dickinson & Company (BDX) with a solid 10.6% raise. Combined these 3 dividend increases raised my forward 12-month dividends by $14.72.
With December already underway I expect an increase to be announced by Venta REIT (VTR) and possibly their spinoff company Care Capital Properties (CCP).
Thus far in 2016 I've received 48 increases from 39 companies within my FI Portfolio combining to increase my forward 12-month dividends by $275.72.
My forward 12-month dividends for my FI Portfolio are up to $5,567.56. Forward dividends in my Loyal3 Portfolio ended the month at $66.36 bringing the total taxable account forward dividends to $5,633.92. My Roth IRA's forward 12-month dividends remained at $241.75.
Below is the chart showing the monthly dividend totals for each year that I've been investing as well as the monthly average. It's not always an increase as some companies have weird payout schedules and eventually some positions will get dropped, but the long-term trend is what matters. The rolling 3-month average is $460.47 which is about $30 less than 2015's mark of $492.
|Company||Dividend Amount||DRIP Shares|
|Procter & Gamble (PG)||$45.80||--|
|Air Products & Chemicals (APD)||$15.89||--|
|Realty Income (O)||$18.52||--|
|General Mills, Inc. (GIS)||$31.33||--|
|Verizon Communications, Inc. (VZ)||$24.83||--|
|YUM! Brands, Inc. (YUM)||$21.47||--|
|Deere & Company (DE)||$36.15||--|
|Omega Healthcare Investors (OHI)||$47.01||1.617|
|November 2016 Total||$265.52|
|2016 YTD Total||$4,778.14|
|Company||Dividend Amount||DRIP Shares|
|November 2016 Total||$1.36||--|
|2016 YTD Total||$57.15||--|
I've updated my Dividend Income page to reflect November's changes.
With just 1 month left in 2016 how do you stand on your dividend goals for the year?
Please share your thoughts below!
Image courtesy of Stuart Miles on FreeDigitalPhotos.net.